Notes to SEFA
Accounting Policies: Note 1 - Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activityof Allen Institute for Artificial Intelligence (AI2) under programs of the federal government for the year endedDecember 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion ofthe operations of the Institute, it is not intended to and does not present the financial position, changes in netassets, functional expenses or cash flows of AI2.Note 2 - Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain typesof expenditures are not allowable or are limited as to reimbursement. AI2 has elected to use the 10-percent deminimis indirect cost rate allowed under the Uniform Guidance.Expenses incurred under federal programs are subject to audit by the awarding agencies. If, as a result of suchaudit, certain expenses incurred are determined to be nonreimbursable, AI2 may be liable for repayment ofdisallowed expenses previously claimed or received.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.